Moody's affirms Affinion

Moody's Investors Service said it affirmed the B1 rating on the proposed $960 million senior secured credit facility and B3 rating on the proposed $270 million senior unsecured notes of Affinion Group, Inc.

The credit facility and senior unsecured notes were upsized in connection with a change in financing mix for the company's proposed acquisition, Moody's said. Moody's said it withdrew the ratings on the proposed senior subordinated notes offering, which was cancelled. The senior subordinated notes were replaced in the proposed capital structure by a $384 million senior subordinated bridge facility, which was not rated by Moody's.

Ratings affirmed include $100 million (downsized from $125 million) senior secured revolving credit facility due 2011at B1, $860 million (upsized from $760 million) senior secured term loan B due 2012 at B1, $270 million (upsized from $250 million) senior unsecured notes due 2013 at B3, corporate family (formerly senior implied) rating at B2 and speculative grade liquidity rating at SGL-2.

The ratings outlook is stable.

The ratings reflect high leverage levels, significant customer churn rates, moderate revenue concentration and legal and regulatory risks. The ratings also consider the company's leading market position, long term relationships with leading affinity partners and recurring revenue base, Moody's said.

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